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Investing March 27, 2001
Market Commentary – Noon
March 27, 2001 - Stocks are climbing and bonds are
plunging as March consumer confidence unexpectedly rose to
117.0 from February's 109.2, which was revised upward from
106.8, confirming the recent improved Michigan consumer
sentiment survey, which takes the pressure off of the Federal
Reserve to cut rates before the next scheduled policy
meeting. Many investors, however, are confused about the
economy's direction.
Reported by editors@plansponsor.com
The DJIA is up 139 to 9827 as computers, telecoms, and defense issues rise on fund buying. The NASDAQ is up 48 to 1966 as semiconductors rise. NYSE breadth is 15-13 positive; NASDAQ breadth is 18-14 positive. Trading is active. Short term technicals are bullish.
The dollar is up despite 0.2% durable goods orders fall. Oil futures are up.
“We’re almost there,” said Bruce Bent, president of Reserve Funds. Bent thinks the second quarter will be “unhappy,” though not as bad as the first quarter. In the third quarter, Bent expects “a move into global blue chips.” The only dark cloud is the strong U. S. dollar, which could hurt large exporting companies, according to Bent.
Until the third quarter, Bent thinks a weak market “provides investors with an opportunity to purge their portfolios.” Cautious analyst recommendations will lead to more market sell-offs in the second quarter, Bent predicts.
Market Action | |
| S&P 500 | 1171.09 +18.40 |
| NASDAQ Composite | 1966.19 +47.70 |
| Dow Jones Industrial Average | 9826.99 +139.46 |
| 10-Year Treasury Yield | 4.99% (previous close, 4.85%) |
| Dollar | Higher |
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